By staff writer, China Africa News
Harare, July 21,2026 —Zimbabwe’s push to move up the lithium value chain is facing fresh challenges after the country’s only operational lithium sulphate processing plant, owned by China’s Zhejiang Huayou Cobalt, was reported to have limited capacity to process minerals from other producers.
The development comes as Harare prepares to tighten restrictions on exports of unprocessed lithium concentrate, with authorities seeking to encourage more local processing and retain greater value from the country’s mineral resources.
Prospect Lithium Zimbabwe, Huayou Cobalt’s local subsidiary, operates one of the country’s biggest lithium projects after the Chinese company invested heavily in Zimbabwe’s battery minerals sector. However, officials say the facility currently cannot accommodate lithium from outside producers because of capacity limitations.
Zimbabwe has attracted billions of dollars in Chinese investment in lithium mining as demand rises globally for battery minerals used in electric vehicles and renewable energy storage. The government says expanding local processing is key to creating jobs and increasing export earnings rather than relying on shipments of raw minerals.
The issue highlights the wider debate across Africa over whether foreign investment in natural resources is delivering enough local economic benefits, with governments increasingly pushing mining companies to process minerals domestically.
